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2015 (2) TMI 767 - PUNJAB AND HARYANA HIGH COURTAddition on account of closing stock of stores, spares, tools etc. - Tribunal deleted addition - Held that:- Question of law has been answered in favour of the Revenue as relying on Commissioner of Income Tax (Central), Ludhiana Vs. M/s Highway Cycle Industries Ltd. [2015 (2) TMI 119 - PUNJAB & HARYANA HIGH COURT]. - Decided against assessee Advances of interest free loans to the associated concerns - Tribunal setting aside the disallowance - Held that:- Issue to find out the nexus between the borrowed funds and the diversion thereof in the form of interest free loans requires to be examined in the light of the judgment of the Hon’ble Supreme Court in S.A.Builders Ltd. Vs. Commissioner of Income Tax (Appeals) [2006 (12) TMI 82 - SUPREME COURT ] . The order of the Tribunal setting aside the disallowance is set aside and that of the Commissioner of Income Tax (Appeals) is restored. The Assessing Officer is directed to consider the disallowance in terms of the order of the CIT (Appeals), after examining the nexus between the borrowed funds and the diversion thereof in the form of interest free loans. - Decided against assessee
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